[Federal Register Volume 78, Number 249 (Friday, December 27, 2013)]
[Notices]
[Pages 79025-79026]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30973]


-----------------------------------------------------------------------

POSTAL REGULATORY COMMISSION

[Docket Nos. MC2014-13 and CP2014-17; Order No. 1920]


New Postal Product

AGENCY: Postal Regulatory Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: The Commission is noticing a recent Postal Service filing 
requesting the addition of Priority Mail Express Contract 17 to the 
competitive product list. This notice informs the public of the filing, 
invites public comment, and takes other administrative steps.

DATES: Comments are due: December 30, 2013.

ADDRESSES: Submit comments electronically via the Commission's Filing 
Online system at http://www.prc.gov. Those who cannot submit comments 
electronically should contact the person identified in the FOR FURTHER 
INFORMATION CONTACT section by telephone for advice on filing 
alternatives.

FOR FURTHER INFORMATION CONTACT: Stephen L. Sharfman, General Counsel, 
at 202-789-6820.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Introduction
II. Notice of Filings
III. Request for Supplemental Information
IV. Ordering Paragraphs

I. Introduction

    In accordance with 39 U.S.C. 3642 and 39 CFR 3020.30 et seq., the 
Postal Service filed a formal request and associated supporting 
information to add Priority Mail Express Contract 17 to the competitive 
product list.\1\ The Postal Service asserts that Priority Mail Express 
Contract 17 is a competitive product ``not of general applicability'' 
within the meaning of 39 U.S.C. 3632(b)(3). Id. at 1. The Request has 
been assigned Docket No. MC2014-13.
---------------------------------------------------------------------------

    \1\ Request of the United States Postal Service to Add Priority 
Mail Express Contract 17 to Competitive Product List and Notice of 
Filing (Under Seal) of Unredacted Governors' Decision, Contract, and 
Supporting Data, December 19, 2013 (Request).
---------------------------------------------------------------------------

    The Postal Service contemporaneously filed a redacted contract 
related to the proposed new product under 39 U.S.C. 3632(b)(3) and 39 
CFR 3015.5. Id. Attachment B. The instant contract has been assigned 
Docket No. CP2014-17.
    Request. To support its Request, the Postal Service filed six 
attachments as follows:
     Attachment A--a redacted copy of Governors' Decision No. 
11-6, authorizing the new product;
     Attachment B--a redacted copy of the contract;
     Attachment C--proposed changes to the Mail Classification 
Schedule competitive product list with the addition underlined;
     Attachment D--a Statement of Supporting Justification as 
required by 39 CFR 3020.32;
     Attachment E--a certification of compliance with 39 U.S.C. 
3633(a); and
     Attachment F--an application for non-public treatment of 
materials to maintain redacted portions of the contract and related 
financial information under seal.
    In the Statement of Supporting Justification, Dennis R. Nicoski, 
Manager, Field Sales Strategy and Contracts, asserts that the contract 
will cover its attributable costs, make a positive contribution to 
covering institutional costs, and increase contribution toward the 
requisite 5.5 percent of the Postal Service's total institutional 
costs. Id. Attachment D at 1. Mr. Nicoski contends that there will be 
no issue of market dominant products subsidizing competitive products 
as a result of this contract. Id.
    Related contract. The Postal Service included a redacted version of 
the related contract with the Request. Id. Attachment B. The contract 
will expire three years from the effective date unless, among other 
things, the customer terminates the agreement, with or without cause 
and without penalty, upon 60 days' written notice to the other party or 
the agreement is renewed by mutual written agreement. Id. at 4. The 
contract also allows two 90-day extensions of the agreement if the 
preparation of a successor agreement is active and the Commission is 
notified within at least seven days of the contract's expiration date. 
Id. The Postal

[[Page 79026]]

Service represents that the contract is consistent with 39 U.S.C. 
3633(a).\2\
---------------------------------------------------------------------------

    \2\ Although the Request appears to state that the certification 
only pertains to paragraphs (1) and (3) of 39 U.S.C. 3633(a), the 
certification itself contains an assertion that the prices are in 
compliance with 39 U.S.C. 3633(a)(1), (2), and (3). See Request at 
2; Attachment E.
---------------------------------------------------------------------------

    The Postal Service filed much of the supporting materials, 
including the related contract, under seal. Id. Attachment F. It 
maintains that the redacted portions of the Governors' Decision, 
contract, customer-identifying information, and related financial 
information, should remain confidential. Id. at 3. This information 
includes the price structure, underlying costs and assumptions, pricing 
formulas, information relevant to the customer's mailing profile, and 
cost coverage projections. Id. The Postal Service asks the Commission 
to protect customer-identifying information from public disclosure 
indefinitely. Id. at 7.

II. Notice of Filings

    The Commission establishes Docket Nos. MC2014-13 and CP2014-17 to 
consider the Request pertaining to the proposed Priority Mail Express 
Contract 17 product and the related contract, respectively.
    Interested persons may submit comments on whether the Postal 
Service's filings in the captioned dockets are consistent with the 
policies of 39 U.S.C. 3632, 3633, or 3642, 39 CFR 3015.5, and 39 CFR 
part 3020, subpart B. Comments are due no later than December 30, 2013. 
The public portions of these filings can be accessed via the 
Commission's Web site (http://www.prc.gov).
    The Commission appoints Curtis E. Kidd to serve as Public 
Representative in these dockets.

III. Request for Supplemental Information

    Section I.B. of the contract defines the ``Effective Date'' as 
``the day following the date on which the Commission issues all 
necessary regulatory approval.'' Request, Attachment B at 1. Section 
III of the contract provides that the ``Effective Date of this Contract 
shall be one business day following the day on which the Commission 
issues all necessary regulatory approval.'' Id. at 4. The Postal 
Service is requested to clarify which provision is controlling, and, if 
necessary, file an amendment to the contract. The Postal Service 
response is due no later than December 27, 2013.

IV. Ordering Paragraphs

    It is ordered:
    1. The Commission establishes Docket Nos. MC2014-13 and CP2014-17 
to consider the matters raised in each docket.
    2. Pursuant to 39 U.S.C. 505, Curtis E. Kidd is appointed to serve 
as an officer of the Commission to represent the interests of the 
general public in these proceedings (Public Representative).
    3. The response to the request for supplemental information is due 
no later than December 27, 2013.
    4. Comments by interested persons in these proceedings are due no 
later than December 30, 2013.
    5. The Secretary shall arrange for publication of this order in the 
Federal Register.

    By the Commission.
Ruth Ann Abrams,
Acting Secretary.
[FR Doc. 2013-30973 Filed 12-26-13; 8:45 am]
BILLING CODE 7710-FW-P